HomeMy WebLinkAboutKohala Coast Resort Association (submitted by Stephanie Donoho)
October 16, 2026
Dr. Holeka Inaba, Chair
Hawaii County Council
25 Aupuni Street
Hilo, HI 96720
Comments on Bill 197
Dear Chair Inaba and Members of the Hawaii County Council,
Thank you to the Hawaii County Council for its efforts over the last two decades to try to regulate the vacation rental
industry, in a way that is equitable to all properties participating in this important part of our visitor economy. As has been
shown through numerous reports and presentations to the council, vacation rentals represent the vast majority of
accommodations on Hawaii Island.
Our association is comprised of the developers, hoteliers and timeshare management companies within Mauna Kea,
Mauna Lani, Waikoloa and Hualalai Resorts. Our latest economic and community impact report shows that there are
approximately 1,100 short-term vacation rentals operating on the Kohala Coast, some managed by our members and
some managed by the owners or other management companies. Based on the latest data from DBEDT, the
vacation rentals on the coast comprise less than 14% of the total for our island.
We have concerns with Bill 197, as it provides property tax amnesty and the removal of penalties and fees to owners
of one type of visitor accommodation, but not to others. Therefore, this bill does not treat the owners of all types of
visitor accommodations fairly.
While we understand the intent of this bill is to encourage homeowners operating these businesses within their
homes to register with the County of Hawaii, we do not believe this unfair tax treatment is warranted.
The Kohala Coast Resort Association is a collection of master-planned resorts, situated north of the Ellison Onizuka Kona
International Airport at Keahole. KCRA members employ more than 5,625 Hawaii Island residents and directly support
an additional 8,600 family members, at our hotels, timeshares, golf courses, restaurants, retail shops and spas. In 2025
KCRA members paid nearly $120 million in GET,TAT and TOT to the State of Hawaii and $44 million in TAT, GET and
RPT to the County of Hawaii. operating within our resorts,
collectively paid $196 million in property taxes to Hawaii County in 2025, accounting for 35.4% of all property tax
collections.
Sincerely,
Stephanie Donoho
Administrative Director, Kohala Coast Resort Association
PO Box 6991, Kamuela, HI 96743 * (808) 747-5762 * kohalacoastresortassn@gmail.com * www.kohalacoastresorts.com